Law Commons^™

Seeking Shelter In The Minefield Ofunintended Consequences - The Traps Oflimited Liability Law Firms, Susan Saab Fortney

Susan S. Fortney

No abstract provided.

Virtuous Billing, Randy D. Gordon, Nancy B. Rapoport

Randy D. Gordon

Aristotle tells us, in his Nicomachean Ethics, that we become ethical by building good habits and we become unethical by building bad habits: “excellence of character results from habit, whence it has acquired its name (êthikê) by a slight modification of the word ethos (habit).” Excellence of character comes from following the right habits. Thinking of ethics as habit-forming may sound unusual to the modern mind, but not to Aristotle or the medieval thinkers who grew up in his long shadow. “Habit” in Greek is “ethos,” from which we get our modern word, “ethical.” In Latin, habits are moralis, which …

Adopting Law Firm Management Systems To Survive And Thrive: A Study Of The Australian Approach To Management-Based Regulation, Susan Saab Fortney, Tahlia Gordon

Susan S. Fortney

In Australia, amendments to the Legal Profession Act require that incorporated legal practices (ILPs) take steps to assure compliance with provisions of the Legal Profession Act 2004. Specifically, the legislation provides that the ILP must appoint a legal practitioner director to be generally responsible for the management of the ILP. The ILP must also implement and maintain “appropriate management systems" to enable the provision of legal services in accordance with the professional obligations of legal practitioners. Because the new law did not define “appropriate management systems” (AMS) the Office of Legal Services Commissioner for New South Wales worked with representatives …

Law Firms As Defendants: Family Responsibilities Discrimination In Legal Workplaces, Joan C. Williams, Stephanie Bornstein, Diana Reddy, Betsy A. Williams

Stephanie Bornstein

This article analyzes how the growing trend of litigation alleging employment discrimination based on workers' family caregiving responsibilities applies to law firms and other legal employers. Our research has found at least thirty-three cases since 1990 in which employees of law firms or other legal employers--both attorneys and support staff--have sued their employers for family responsibilities discrimination (“FRD”). FRD is discrimination against employees based on their family caregiving responsibilities for newborns, young children, elderly parents, or ill spouses or partners. Here we analyze these cases, including the employee experiences that have prompted litigation and the legal theories on which the …

Chicken Little Lives: The Anticipated And Actual Effect Of Sarbanes-Oxley On Corporate Lawyers' Conduct, Susan Saab Fortney

Susan S. Fortney

This article addresses the controversy surrounding the Sarbanes-Oxley Act of 2002, which was seen by many lawyers as threatening the relationship between lawyers and their corporate clients. Part I of this article introduces the topic by providing a brief history of the increased government regulation and enforcement actions that forced lawyers to reexamine their role in representing their clients, beginning with the case of SEC v. National Student Marketing Corp. Part II reviews the organized bar's reaction to Sarbanes-Oxley. Part III focuses on law firms' response to the legislation. Part IV considers the views of individual corporate and securities lawyers …

Law Firm General Counsel As Sherpa: Challenges Facing The In-Firm Lawyer's Lawyer, Susan Saab Fortney

Susan S. Fortney

This article addresses the increasing trend in law firms appointing general counsel. Part I of this article provides an overview of the frequency of law firms employing the services of general counsel and the different roles general counsel may assume in law firms. Part II outlines the duties of general counsel in advising the firm on matters related to firm structure. Part III observes that general counsel may play an important role in helping law firms choose the most appropriate method to compensate its lawyers to achieve the desired results. Part IV stresses the importance of the preventative measures general …

Am I My Partner's Keeper? Peer Review In Law Firms, Susan Saab Fortney

Susan S. Fortney

This article explores the concept of peer review in the practice of law. The article begins with an introduction to law partners’ liability exposure for the acts or omissions of their law partners. The article explains how this exposure has traditionally been approached as vicarious liability and how the government is attempting to transform these issues into direct liability by using failure to monitor claims. Part I briefly reviews perspectives on the emergence, growth, and structure of law firms, then uses a matrix to show how firm culture and organizational structure affect internal and external controls on attorney conduct. Part …

The Role Of Ethics Audits In Improving Management Systems And Practices: An Empirical Examination Of Management-Based Regulation Of Law Firms, Susan Saab Fortney

Susan S. Fortney

For decades, legal malpractice experts have urged lawyers to implement risk management measures. To assist law firms in doing so, legal malpractice insurers have provided audit services and self-audit materials. Under the Australian regulatory regime, incorporated legal practices are required to complete a self-assessment process and to report on the firm's compliance with ten objectives of sound law practice. Using management-based principles, this Article discusses steps to take to encourage ethics audits "to merge good ethics and good business" in the U.S.

Preventing Legal Malpractice And Disciplinary Complaints: Ethics Audits As A Risk-Management Tool, Susan Saab Fortney

Susan S. Fortney

This column examines the value of firm lawyers conducting and supporting ethics audits as an integral feature of a comprehensive risk-management program. For decades, legal malpractice experts have urged lawyers to implement systems, policies, and procedures related to the delivery of legal services. Once a firm adopts systems, policies, and procedures, a meaningful risk-management system requires a periodic examination to monitor lawyers’ compliance. Rather than waiting for a professional liability insurer to recommend or require such a systematic examination, proactive firm leaders and lawyers should seriously consider devoting time and resources to periodic ethics audits.

Are Law Firm Partners Islands Unto Themselves? An Empirical Study Of Law Firm Peer Review And Culture, Susan Saab Fortney

Susan S. Fortney

This article examines how attitude and law firm culture affect peer review and principal accountability by using empirical data obtained from a survey of Texas law firms. Part I briefly describes the research design and the general profiles of respondents of the survey. Part II discusses the peer review measures used by the firms surveyed for this article. Part III analyzes attitudes about peer review. Part IV focuses on the obstacles to peer review. Part V considers the connection between firm culture and the implementation of peer review measures. Finally, the conclusion explains how firm managers can reshape attitudes to …

The Billable Hours Derby: Empirical Data On The Problems And Pressure Points, Susan Saab Fortney

Susan S. Fortney

This article considers the consequences of law firm use of the hourly billing method and the recent increase in billable hour requirements. Part I of this article describes the rationale and methodology of an empirical study conducted in 2005 that explored attorney work-life issues and employer efforts to assist attorneys in dealing with work-life conflicts. Part II summarizes select study findings related to billable hours requirements and pressure. Part III concludes by considering what forces and players will change the current course of conduct in which law firm leaders treat increases in billable hours expectations as a necessary evil.

High Drama And Hindsight: The Llp Shield Post-Anderson, Susan Saab Fortney

Susan S. Fortney

This article explores several disadvantages associated with limited liability partnerships (LLPs) in the wake of the Anderson-Enron debacle. The article explains how conversion to LLP from a traditional partnership may undercut the incentive for partners to devote time and resources to monitoring and risk management activities. Additionally, the article notes that conflicts may arise regarding the payment of debts when a firm, without sufficient malpractice insurance, converts to an LLP. The article delves into the exodus problem caused by the lack of partners’ commitment to the firm. The article also describes the tension between partners over malpractice insurance decisions that …

Fortifying A Law Firm's Ethical Infrastructure: Avoiding Legal Malpractice Claims Based On Conflicts Of Interest, Susan Saab Fortney, Jett Hanna

Susan S. Fortney

This article addresses the prevailing problem of malpractice claims based on conflicts of interest. Part I of this article introduces the topic by underscoring the seriousness of all conflicts of interest and recommending preventative action. Part II describes measures that law firms can take to detect and manage conflicts and analyzes the effect of the firm’s ability to avoid conflicts claims on a firm’s ethical infrastructure. Part III focuses on some of the most common conflicts situations that result in malpractice claims and sanctions. The discussion includes selected conflicts cases that illustrate problems and patterns. Part IV concludes by urging …

Retaining Color, Veronica Root

Veronica Root

It is no secret that large law firms are struggling in their efforts to retain attorneys of color. This is despite two decades of aggressive tracking of demographic rates, mandates from clients to improve demographic diversity, and the implementation of a variety of diversity efforts within large law firms. In part, law firm retention efforts are stymied by the reality that elite, large law firms require some level of attrition to function properly under the predominant business model. This reality, however, does not explain why firms have so much difficulty retaining attorneys of color — in particular black and Hispanic …

Globalization Of Law Firms: A Survey Of The Literature And A Research Agenda For Further Study, D. Daniel Sokol

D. Daniel Sokol

The international expansion of law firms plays a critical role in understanding the business of law and the nature of globalization. This article responds to two articles on law firm expansion in the Indiana University - Bloomington Law School symposium on the Globalization of the Legal Profession. The article utilizes management studies' theoretical work on internationalization and applies it to law firm expansion to explain law firm strategic decision-making. The author creates a six part taxonomy for types of law firm expansion and provides a snapshot of the increasing U.S./U.K. dominance of capital markets, corporate and mergers and acquisitions legal …

The Preclusion Of Nonlawyer Ownership Of Law Firms: Protecting The Interest Of Clients Or Protecting The Interest Of Lawyers?, Louise Hill

Louise L Hill

For the third time in as many decades, lawyers in the United States have sullied the notion of nonlawyer ownership of law firms. The most recent examination of alternative law practice structures was undertaken by Ethics 20/20, a Commission created by the American Bar Association [ABA] to conduct a plenary assessment of the ABA Rules of Professional Conduct and related ABA policies. A Working Group was formed which considered whether clients could be better served if law practice entities were restructured. To this end, issues were formulated and different law practice configurations were proposed, about which the public and members …

Will Law Firms Go Public?, Roberta S. Karmel

Roberta S. Karmel

Law in the United States is a big business and big law firms are a global business. Currently, under rules of the American Bar Association (ABA) and most states law, firms are not allowed either to include non-lawyers as partners or accept equity investments from non-lawyers. This Article will argue that (even if law firms retain the form of partnerships) they eventually will accept investments from third parties, and possibly even go public, but this development could lead to a loss of professionalism, as it has with other industries, and could also lead to the end of self-regulation. Among the …

No Money, Mo' Problems: Why Unpaid Law Firm Internships Are Illegal And Unethical, Eric M. Fink

Eric M Fink

The practice of law firms offering unpaid internships in lieu of paid employment should concern law students and law school graduates who face an increasingly tight market for entry-level legal jobs. This article argues that such unpaid internships are impermissible under the Fair Labor Standards Act (“FLSA”). It further argues that lawyers who illegally hire unpaid interns should be subject to discipline under the ethics rules of the legal profession.

While law students collectively have an interest in ending this exploitative practice, they have a disincentive against taking action themselves, lest they hurt their prospects in the already unfavorable postgraduate …

How Markets Work: The Lawyer's Version, W. Mark C. Weidemaier, Mitu Gulati

W. Mark C. Weidemaier